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All three dimensions of local capacity are thus usually poorly developed at the BoP.Yet if the entrepreneurial drive and...
12/08/2022

All three dimensions of local capacity are thus usually poorly developed at the BoP.
Yet if the entrepreneurial drive and motivation that exist at the BoP (Chambers, 1997;
Prahalad, 2005) could be better utilized and made more productive by building local
capacity, it would spur local vibrancy, create an atmosphere of industriousness, and
augment people’s ability to engage in economic activities. In fact, because the capacity of
the BoP to engage in business with the firm depends on the local capacity, the firm is
essentially forced to incorporate local capacity building mechanisms in its business model.
The economic activity that this would generate will produce positive development cycles
or externalities from which the firm can also benefit. Local capacity building is thus
mutually beneficial to the firm and the community.

5.3.2 Local capacity buildingWhile the business model qualities with regard to the value proposition refer to the firm’s...
11/08/2022

5.3.2 Local capacity building
While the business model qualities with regard to the value proposition refer to the firm’s
relationship with individuals at the BoP, local capacity building refers to the extent to
which the firm contributes to the local capacity of communities. Chaskis, Brown,
Venkatesh, and Vidal (2001: 7) define local capacity at the community level as the
“interaction of human capital, organizational resources, and social capital existing within a
given community that can be leveraged to solve collective problems and improve and
maintain the well-being of that community”. Local capacity building involves innovation,
the generation of economic activity, the improvement of the quality of life, the
enhancement of recognition of individual worth, and the development of respect for the
natural environment (Murphy & Thomas, 2003).

Developing these skills enables BoP producers to do morebusiness within the formal market system in which there are ...
11/08/2022


Developing these skills enables BoP producers to do more
business within the formal market system in which there are fewer growth constraints
compared to the informal economy in which businesses cannot become too large in case
they attract too much attention. It would also allow producers to break away from local
middlemen and give them access to doing business with more professional organizations.
As BoP producers’ businesses grow, their economies of scale and productivity too would
benefit.

11/08/2022

Improved living conditions
“Poor people live in discomfort, in unhygienic, dangerous, dirty, badly serviced, and often
polluted environments where they are vulnerable to many physical shocks, stresses and
afflictions” (Narayan et al., 2000b: 34). They are “often described as tired, exhausted and
worn out” (Narayan et al., 2000b: 34), which is largely due to the hard work necessary to
survive while at the same time they lack food and access to good healthcare. In fact,
“[m]ore than anything else, poor people dread serious illness within the family. Illness
removes individuals from the labor pool and can push a household into poverty”,
particularly as affordable health care is lacking (Narayan et al., 2000a: 42). Furthermore,
feelings of “powerlessness, voicelessness, dependency, shame, and humiliation” are strong
(Narayan et al., 2000a: 7). A feeling of insecurity often makes people reluctant to make
long-term investments, and economic uncertainty makes people afraid to make long-term
commitments

18. Business skillsAlthough BoP producers may have the business skills to operate in the informal economy,they may miss ...
11/08/2022

18. Business skills
Although BoP producers may have the business skills to operate in the informal economy,
they may miss the necessary business skills to be able to operate successfully in the formal
market system. Those who do operate in the formal economy usually also stand to benefit
from receiving training in business skills, such as those they lack due to insufficient formal
education. These could be skills in writing a business plan, bookkeeping, and human
resources management all of which are important business skills, which they might not
have sufficiently developed

10/08/2022

The articles of incorporation — or a certificate of incorporation — is a comprehensive legal document that lays out the basic outline of your business. It's required by every state when you incorporate. The most common information included is the company name, business purpose, number of shares offered, value of shares, directors, and officers.

The horizontal axis of Figure 5.4 depicts today’s business. The axis’ rationale is thatif people at the BoP are doing we...
10/08/2022

The horizontal axis of Figure 5.4 depicts today’s business. The axis’ rationale is that
if people at the BoP are doing well and the business enables people to thrive, the business
itself will benefit. This rationale suggests a strong link between the business model’s
contribution to local development and business success. The contribution a business can
make to help people “develop their full potential and lead productive, creative lives in
accord with their needs and interests” (UNDP, 2001: 9) is strongly reflected in the business
model qualities. Amartya Sen (1999: 18) refers to these as “substantive freedoms” and
“instrumental freedoms”, which respectively represent the freedom and capabilities of
people “to lead the kind of lives they value; and have reason to value” and the freedoms
that facilitate people to acquire such substantive freedoms.

Figure 5.4 portrays the framework of business model qualities. We distinguishbetween five dimensions, which together cap...
10/08/2022

Figure 5.4 portrays the framework of business model qualities. We distinguish
between five dimensions, which together capture the BoP’s desire, capacity, and
possibility to do business with the firm, as well as the business model’s potential to
improve in the future and its potential size. The five dimensions are:
1. The firm’s value proposition, which captures the BoP’s desire to engage in
business with the firm.
2. Local capacity building through the firm’s business model, which captures the
BoP’s capacity to engage in business.
3. The embeddedness of the firm in local communities, which captures the extent to
which the business is an integrated part of the lives of those at the BoP and the BoP
perceives doing business with the firm to be an actual possibility for them.
4. Inclusion of learning in the business model, which captures the extent of learning
by the firm through native capability and therefore its capacity to improve over
time.
5. Scalability of the business model, which captures the potential scale and scope of
the business model.

To foreign qualify, file a Certificate of Authority with the state. Many states also require a Certificate of Good Stand...
02/08/2022

To foreign qualify, file a Certificate of Authority with the state. Many states also require a Certificate of Good Standing from your state of formation. Each state charges a filing fee, but the amount varies by state and business structure.

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